BAKU, Azerbaijan, June 24
By Tamilla Mammadova – Trend:
The global inflationary pressures related to the economic recovery will continue to affect inflation in Georgia, said World Bank Regional Director for the South Caucasus Sebastian Molineus, Trend reports via Georgian media.
He made the remark at a presentation by the National Bank of Georgia (NBG) and the World Bank on the World Bank's 2021 Global Economic Outlook.
Molineus also spoke about ways to tackle inflation, noting that accelerating economic recovery in the world and Georgia is promising, but the recovery process is still risky.
"Strict COVID-19 pandemic control is necessary for sustainable recovery, which requires faster vaccination. COVID-19 impact mitigation measures should be phased out. Re-strengthening structural reforms in the near future, improving human capital, promoting digitalization, and understanding the risks associated with climate change may increase productivity with a significant growth pace," he said.
According to Molineus, global inflationary pressures related to economic recovery will continue to affect inflation in Georgia.
"Because this trend is global, the government has little leverage to respond. Nevertheless, the continuation of the de-dollarization process can help reduce exchange rate fluctuations, while improving social protection systems can mitigate the impact on vulnerable groups in society," he said.
---
Follow the author on Twitter: @Mila61979356